This appears to be what happens when rich people that don’t need houses buy them anyway as investments. There should be laws preventing a person from owning more than three houses in the United States.
Home buyers need 80% more income to buy than 4 years ago
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Re: Home buyers need 80% more income to buy than 4 years ago
#12> The income needed to comfortably afford a home is up 80% since 2020 Based on the $343,000 house price, and the 3%/7% rate difference they mention between 2020 and 2024, the mortgage on a house the exact same price would've gone up from $1900/mo to $2650/mo. That alone is already a 40% increase. Obviously houses prices have inflated along with everything else, but the pain is really mostly coming from the increased…
Conversely, perhaps that $343k home actually shouldn’t be worth that much. In a properly functioning market (e.g. no perverse incentives to own a unit and decline to rent it instead of renting it for less money, along with genuinely unpenalized liquidity such that a long-time owner can sell and buy something different without paying utterly absurd taxes and fees), prices should tend toward the market-clearing price.…
I think it's easy to say that, until you had to build one for that price. The lot alone and hook up fees, taxes would probably hover around 1/3-1/2 of that price.
Then House it self is a lot of labor to construct. Even moving the materials sometimes is very labor intensive. Plumbing, Bathrooms, Lighting, there's a lot that goes into it. Immigrant and cheap manual labor is probably what makes it affordable.
Re: Home buyers need 80% more income to buy than 4 years ago
#13This appears to be what happens when rich people that don’t need houses buy them anyway as investments. There should be laws preventing a person from owning more than three houses in the United States.
This is a valid point all over EU as well.
Re: Home buyers need 80% more income to buy than 4 years ago
#14How much has income increased?
(Not 80% but you need to include that)
Re: Home buyers need 80% more income to buy than 4 years ago
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Re: Home buyers need 80% more income to buy than 4 years ago
#16This appears to be what happens when rich people that don’t need houses buy them anyway as investments. There should be laws preventing a person from owning more than three houses in the United States.
I'll try to invoke Cunningham's Law by saying: Housing is close to a perfectly-competitive market.
I think the above is true, but I'd welcome counterexamples.
So, the way to depress housing prices is to build more houses. _Most_ housing regulations, including making it illegal for people to own four houses, reshuffle the ownership of existing houses, and don't depress their prices. As regards that regulation: if the super-rich aren't able to own $many houses, the merely-rich will buy more, and thus housing prices would be the same.
Re: Home buyers need 80% more income to buy than 4 years ago
#17Capitalism working its magic. As the resources and people to exploit abroad dwindled, it started eating itself from inside out to profit as was predicted. https://www.reddit.com/r/canadahousing/comments/tose5z/landl...
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Re: Home buyers need 80% more income to buy than 4 years ago
#18Earlier quoted context omitted.
Conversely, perhaps that $343k home actually shouldn’t be worth that much. In a properly functioning market (e.g. no perverse incentives to own a unit and decline to rent it instead of renting it for less money, along with genuinely unpenalized liquidity such that a long-time owner can sell and buy something different without paying utterly absurd taxes and fees), prices should tend toward the market-clearing price.…
I think it's easy to say that, until you had to build one for that price. The lot alone and hook up fees, taxes would probably hover around 1/3-1/2 of that price. Then House it self is a lot of labor to construct. Even moving the materials sometimes is very labor intensive. Plumbing, Bathrooms, Lighting, there's a lot that goes into it. Immigrant and cheap manual labor is probably what makes it affordable.
>The lot alone and hook up fees,
Along with many of the places people keep building are in areas short of water. Since most of it is SFH larger water transport infrastructure has to be installed at great cost and though places that are already developed. Then you add more expensive road infrastructure that taxes on the SFHs won't fully pay for. You build a huge infrastructure debt trap that we're both paying for now (from the past) and the us in the future will have to pay even more for.
Re: Home buyers need 80% more income to buy than 4 years ago
#19This appears to be what happens when rich people that don’t need houses buy them anyway as investments. There should be laws preventing a person from owning more than three houses in the United States.
So..... Now they have to permanently "rent" them (maybe from a company they have ownership in)?
Maybe we should just build more houses.
Re: Home buyers need 80% more income to buy than 4 years ago
#20Earlier quoted context omitted.
The number of luxury condos in big cities has always confused me. I guess the market is dual-income couples with high salaries? Even coming from the software world, I wonder what these people do. Finance?
> the market is dual-income couples with high salaries This is some kind of memic impossibility. It's impossible to move into a city for a high paying job AND have a partner AND the partner earning a lot too. The closest I've ever been was when my job and the relationship disintegrated at the moment the partner got such job after over 5 years of searching, and I really don't feel like trying again ever.
One partner does remote work, and the other moves for a job? That seems trivial and not particularly unusual.